The Gross Domestic Product, measured at market prices, was R$ 429.1 billion in the second quarter and R$ 387.7 billion in the first quarter, resulting in a cumulative figure of R$ 816.8 billion in the semester.

Out of the R$ 429.1 billion relative to Q2, R$ 384.3 billion referred to Added Value at basic prices and R$ 44.8 billion to Taxes on products.

Among the components of demand, the Household consumption amounted to R$ 232.4 bi, Government consumption to R$ 75.5 billion and Gross Fixed Capital Formation to R$ 80 billion in the second quarter of the year. The balance of Goods and Services Balance had a surplus of R$ 23.5 billion (R$ 81.5 billion of exports and R$ 58.1 billion in imports) and the the Stock Change was R$ 17.8 billion.

Net lending in Brazil was R$ 14.8 billion in Q1

The positive balance between foreign receiving and payments, i.e. the Net Lending of the National Economy was of R$ 9.6 billion in Q2 2004 – an increase of R$ 8.9 billion in relation to Q2 2003, when Net Lending was R$ 0.7 billion. This difference was a result from, mainly, the Current External Balance, of R$ 8.6 bi, caused by the increase of the External Balance of Goods and Services, which changed from a surplus of R$ 14.1 billion in Q2 2003 to R$ 23.5 billion in Q2 2004. In terms of the cumulative result of the first semester, Net Lending, which reached R$ 14.8 billion against 1.2 billion in the Q1 2003, is equally explained by the Foreing Balance of Goods and Service, amounting to R$ 14.9 billion.

The Gross National Income reached R$ 412 billion in Q2 2004, versus R$ 359.1 billion in the same period of 2003. In the same comparison, Gross Savings, which is the installment of the gross available income not used in the final expenditure, reached R$ 106.7 billion in 2004, against R$ 80.8 billion in 2003.

Tables V.I and V.II show the Quarterly Economic Account and the Accounts of the Rest of the World with the National Economy in the second quarter of 2003 and 2004.

Financial Account

Period was characterized by intensification of amortization

Despite the tendency to reduction of inflow, the government gave bonuses of the Republic, in June, amounting to R$ 2.3 billion. Foreign direct investment (IED) had a slight decrease in the quarter, recording an increase of R$ 4.6 billion in Q2 2003. In the quarter, foreign direct investment totalled R$ 11.9 billion, against R$ 11.5 billion in the same period of 2003.

The data of table V.3 show that the National Economy had a negative net inflow of R$ 17 billion, being R$ 4.2 billion relative to the IMF amortization in Q2 2004, and presented reduction of the international savings by about R$ 4 billion. Table V;4 shows that, without the accounting of transactions with the IMF, Brazil would present a negative net collection of R$ 12.8 billion and accumulation of reserves of 0.3 billion in Q2 2004.

The financial instrument Securities other than Shares (F.3) had negative net inflow of R$ 17.1 billion in Q2 2004, while in the Q2 2003 the positive net inflow was R$ 6 billion. See table V.5 (in assets and property change).

The result of Q2 2004 was mainly due to the amortization of long-term Republic Bonuses (Global 04) dealt abroad, of about R$ 8.7 billion, and notes and commercial papers, R$ 8.2 billion in the quarter.

The financial instrument Loans (F.4) recorded a negative net inflow of R$ 6.7 billion, against a positive net inflow of R$ 1.6 billion in Q2 2003. This negative change was a result of the amortization in the quarter of R$ 16.8 billion, being R$ 4.2 billion relative to  amortization with the IMF. 

In the semester, the negative net inflow was R$ 15.8 billion, against a positive net collection of 13.9 billion in the first semester of 2003. Except for the resources for regularization of the Payment Balance – in comply with the IMF - the net inflow in Loans (F.4) was negative by R$ 2.5 billion in Q2 of 2004. In the first semester, those inflows were negative by R$ 7.6 billion, against a net negative inflow of R$ 12 billion in the same period of 2003.

In Q2 2004, the financial instrument Stocks and Other Capital Participation (F.5) had a

positive net inflow of R$ 4.3 billion, against R$ 6.9 billion in Q2 2003. The highlight in the change of F.5 was the decrease of foreign investments, shares, which changed from a positive net inflow of R$ 1.5 billion in Q2 2003 to a negative net inflow of form F.5, there was also reduction of net inflow from R$ 5.4 billion in Q2 2003 to R$ 4.4 billion in the same period of 2004. In the semester, the net inflow, through F.5, amounted to R$ 15.8 billion, versus R$ 12.7 billion in the first semester of 2003.

F.7 - Other credits and debts – recorded a relevant increase in Q2 2004, reaching a positive net inflow of R$ 2.8 billion, against a negative net inflow of R$ 6 million in the same period of 2003. A highlight was the increase of inflow through the comercial credits and antecipations, basically directed to foreign trade credit.

¹ Inclui Participação no Capital e Empréstimos Intercompanhia.

² Inclui Participação no Capital e Ações.